RMAFC decries low level of investment in the gas sector.

[FMINigeria]

[img width=300 height=223 alt=Elias-Mbam[1]]http://fmi.gov.ng/wp-content/uploads/2012/09/Elias-Mbam1-300x223.jpg                        The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has decried the low level of investment in the gas sector in Nigeria even when the country is blessed with abundant natural gas reserves.

The Chairman of the Commission, Engr. Elias Mbam who led members of the Commission on an oversight visit to gas installations in Portharcourt, Rivers State expressed disgust at the appalling neglect of the sector where the country is ranked 7th in terms of proven natural gas reserves in excess of 180 trillion standard cubic feet estimated to last for over 100 years.

Speaking after inspecting gas facilities at Okoloma Gas Plant, Mbam also harped on the need for investors to deliberately engage in massive gas exploration instead of waiting to find gas while searching for oil, adding that over-reliance on oil production deprives Nigeria of huge revenue from the gas sector.

Conducting members round the Okoloma Gas Plant, Engr. Benneth Agbaogu, the Operations Manager of the plant operated by Shell Petroleum Development Company (SPDC), explained that SPDC supplies over 70 per cent of the domestic gas market mainly for power generation, industry and cooking gas for domestic use through a gas transmission and distribution network of approximately 110 km.

While at the Afam Power Plant also operated by SPDC, the Operations Manager told members of RMAFC that the power plant currently generates 650 Mega Watt of power which it transmits to the national grid.

The RMAFC team also visited the Nigeria Liquefied Natural Gas (NLNG) project at Bonny jointly owned by the SPDC and the NNPC where the General Manager, Production, Chima Isilebo told the members that the multi-billion dollar NLNG commands about 8 per cent of global gas supply with installed capacity of 22 metric tonnes per annum.   He also disclosed that the project maintains 11 buyers with 17 special payment agreement and 24 dedicated ships in its kitty.

Mr. Zhaji Kalli, Director Gas, Federal Ministry of Petroleum Resources who accompanied members of the revenue commission on the oversight visit opined that for Nigeria to achieve its full potential in gas exploration across the entire value chain, Government must evolve appropriate pricing and fiscal regime as well as legal and regulatory framework in line with global best practices.

To this end, he stressed that NNPC as a group is committed to developing a multi-billion dollar gas-based industrial park fashioned after the Xenel (Saudi) Petrochemical Plant, Nagarjuna (Indian) Fertilizer Plant and the NNPC Chevron Central Processing Facility estimated at 15-20 billion USD anticipated investment outlay with additional investments in infrastructure and utilities to be provided by a special purpose vehicle constituted from willing investors and the Federal Government of Nigeria.

Via: Federal Ministry of Information (FMI) Nigeria